| Why invest in something other
than mutual funds and stocks?
In a July 28, 2002, a Washington Post article titled "The
Fall of Enron: Coming Storms" staff writers Peter Behr
and April Witt reported:
"On Oct. 16, 2001, Enron was forced to disclose $1 billion
in losses, more than half from LJM deals gone bad. Thus began a
chain of events that would drive Enron's stock price into the dirt
and force the company into bankruptcy proceedings, wiping out thousands
of jobs and tens of billions of dollars in savings."
What actually happened?
- Enron manipulated many of its stocks off-shore to inflate their
value and avoid taxes
- The majority of Enron’s 401K mutual funds were invested
in Enron stock
- Enron’s stock value climbed to over $90 a share by the
year 2000, plummeting to pennies
- Estimates go as high as $60 billion dollars lost in stock value
wiping out the retirement funds of most of Enron’s employees.
Enron was one of the first companies to fall because of scandalous
accounting. Next would come Arthur Anderson, Enron's auditing accounting
firm, and then WorldCom.
The analysts on Wall Street are fond of telling their clients to
"hang in for the long haul." But all of the signs of the
times are leaving the Baby Boomers hoping that they wont have to
retire when the stock market is on a downward trend, or worse yet,
invested in the next Enron.
What is a passive income asset?
It is a real estate or business asset that you own
which provides a positive cash flow. An example is a house owned
as a rental, a business such as a Laundromat, or an apartment complex.
The end goal of building a passive income portfolio is to create
a positive cash flow that will pay for your living expenses, at
whatever level you want to live. If you need $5,000 a month to live
on, then the goal is to purchase passive income properties until
their combined cash flow is equal to or greater than $5,000 a month.
At that point you have true walk away income, the foundation on
which the wealthy build their castles.
Investment: The Real Reason for the FasTRaX
Business System
Many people have asked the question “Why
own a business at all?” The simplest answer given by
most investors and business owners is “to
sell it” so they can live their lives the way the want.
The Industrial Age has programmed us all to think that income can
only be obtained by working a job. The truth is that because of
the tax structure we have in America we keep 50% of what we earn.
If you don’t invest, you cannot get ahead of the income curve
and you can never expect to create wealth for retirement or inheritance.
How can FasTRaX Investment help me begin learning
Investing?
FasTRaX Investing acts as your guide and will point you in the
direction of creating for yourself walk away, economy proof income.
More than a how-to manual, FasTRaX Investing will guide you in what
you have to know to be a successful passive income investor by:
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Learning the basics of investing by playing games. |
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Building your retirement plan into your passive income portfolio. |
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Leveraging your personal residence into passive income assets. |
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Learning about different types of passive income assets. |
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Using professional guidance to leverage your time. |
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